RBA Bankruptcy Section Luncheon with Jeremy Williams of Kutak Rock on “Not a Loan (Wink): Merchant Cash Advances on Trial in Bankruptcy”

This program examines merchant cash advances through the lens of bankruptcy reality, where “purchased receivables” are often tested against substance-over-form principles. Panelists will explore how courts analyze the growing trend of reverse triangular merger arguments along with whether MCAs are true sales or disguised loans, with particular attention to automatic stay, property of the estate, and priority disputes. The discussion will provide practical guidance for navigating litigation strategy, documentation pitfalls, and emerging trends as MCAs increasingly collide with the Bankruptcy Code.